Company

Mercado Abierto Electrónico S.A. is a market organized under the laws of the Republic of Argentina, which started business in March 1989 upon approval by the Argentine Securities and Exchange Commission (CNV) on December 27, 1988. Since March 1, 1993 MAE operates as a self-regulatory entity under the supervision of the CNV.

Encouraged to address the need to organize an entity for the electronic recording of “over-the-counter” trades, the CNV issued General Resolution No.121. Under such Resolution, brokers/dealers were required to communicate through an electronic system for the performance of transactions.

In addition to compliance with applicable regulations, the organization of this electronic market relies on the following principles:

Minimizing risks in every transaction.
Improving pricing information.
Confirming and recording daily transactions.
Providing the public generally and brokers specifically with the best information available on market prices and volumes.

At its inception, MAE had 172 members and as a result of mergers and acquisitions driven by the banking sector, it is currently composed by 90 entities including national, provincial and municipal banks, national private banks, foreign banks, cooperative banks, financial companies, exchange offices and brokers.

Argentine or foreign capital Banks as well as Financial Institutions are eligible to be a MAE member.

MAE and the CNV provide detailed information on the requirements necessary to be a MAE member: minimum capital requirements, collateral assets and compliance with the applicable ethical rules, among others.

MAE is an electronic market where public and private securities are traded both through spot and forward transactions.

Products traded must be registered with the pertinent regulatory entities, authorized by the CNV for public offering and may be traded on the MAE as well as on other markets or on both at the same time.

The products traded are basically the following:

Government Bonds
Corporate Bonds (“Obligaciones Negociables”)
Treasury Bonds
Treasury Bills
Provincial and Municipal Bonds
Certificates representing an interest in financial trusts or closed mutual funds

Trading on the MAE is conducted from Monday to Friday 9:30 a.m. to 06:00 p.m.

Transactions are regularly settled in 72 hours unless another specific timeframe is expressly agreed by the parties.

These transactions may be settled in the currency of legal tender (Pesos) or in US dollars, indistinctly.

Following IOSCO recommendations made to its members and approved at the annual meeting held in Santiago de Chile in November 1990, the MAE’s Board of Directors adopted these recommendations on February 12, 1992. In August 1992 Deloitte & Touche (DRT) certified MAE’s compliance with the transparency rules set by IOSCO.